City issues, even if you check the City for outstanding violations doesn't mean you are free and clear.  

Using funds for what a tenant may be responsible for makes sense, using the funds to make a repair that a landlord is responsible for is still comingling funds and a violation of escrow requirements.

In my opinion if you deviate from this rule you can be putting yourself in a fair housing violation or discrimition suit.

It has to be a loan so that way I don't violate SEC rules.

Acting as your own attorney is a bad idea, your agreement has issues in violation of IRS Code for residential property leases, you can't pay for maintenance or make improvements as the owner is required to capitalize and depreciate items and he's not expensing costs if you pay for them, doing so is tax fraud.

@Andrew SI think you violated the BP rule... instituted after Troll Banishment day...

When we are on the property and in the unit we keep our eye out for possible rental agreement violations as well, including property damage.

Interesting enough is that these properties don't seem to be subject to the same registration requirements & any code violations are written again the occupants, after a friendly call from the bldg inspector explaining the complaint.

She was referring to a building violation on the property.

Another thing to look for on the older homes in those locations are the PBS violations that require a certain amount of money to be put in escrow until these violations are mediated.